One in Three U.S. Adults Owns a Connected TV, with Many Spending
50% or More of Their TV Viewing Time Devoted to Digital Video Programing
& 76% Saying that Streaming Video to TV Is As Good As or Better Than
Traditional TV

The study revealed that one in three Americans over the age of 18 owns
either a smart TV or a device that streams video to their TVs, with two
in five (38%) of those individuals spending at least 50 percent of their
TV viewing time streaming video to their television.

Half of connected TV owners say they are more likely to stream content
than watch traditional TV because there are fewer commercials, while 40
percent considered commercials on these platforms to be less intrusive
than standard TV ads. In addition, they are quite satisfied with their
new viewing experience, with 76 percent saying it is just as good or
better than traditional TV (“as good” 51%, “better” 25%). They also cite
a preference for streaming since it gives them greater control (33%) and
better selection/more content of interest (29%).

In the connected TV universe, people watch a range of programming at
least once a month:

Over three-quarters stream Netflix and YouTube video content

About half stream traditional TV shows, Amazon Prime programming, and
videos from portals such as AOL, Google and Yahoo

Two out of five stream videos from Hulu Plus

Over a third (35%) of connected TV owners are streaming more video to
their TV than a year ago. One in four smartphone and tablet owners, and
one in five computer owners say the same. Meanwhile, 19 percent of
adults 18 and older state that they are watching less traditional TV
year-over-year.

Traditional TV Undergoes Multiscreen Transformation:

According to the report, 78 percent of U.S. adults simultaneously use
another device while watching traditional TV, with browsing the internet
being the most popular activity across devices and smartphones serving
as the predominant second screen. More than two-thirds (69%) of
smartphone users regularly conduct activities on their mobile phone
during TV viewing, and 84 percent do so daily. In addition, more than
half of computer and tablet owners multiscreen during TV viewing, with
79 percent of computer users doing so daily, and 65 percent of tablet
owners doing so with the same frequency.

A significant portion of smartphone, tablet, and computers user perform
tasks related to the TV shows or commercials they are watching,
including:

Search for reviews of a product/service shown in a commercial (37%
smartphones, 40% tablets, 40% computers)

Post on social media about a commercial (34% smartphones, 28% tablets,
26% computers)

The study’s results confirm that multiscreening is on the upswing
overall, with 40 percent of smartphone users saying that they have
increased multiscreening activity over the past year. The rise
year-over-year is similar for tablet users (39%), with a solid increase
among computer users (28%) as well.

Connected TVs and multiscreening are irrevocably altering TV viewing,”
said Sherrill Mane, Senior Vice President of Research, Analytics, and
Measurement, IAB. “While consumers continue to embrace the big screen at
home viewing experience, they are streaming more digital video for both
original programming and for TV shows. Smartphones and other devices
continue to broaden the shared TV viewing experience beyond the living
room.”

“With this year’s Digital Content NewFronts kicking off on April 27, it
is even more important for our members and the industry at large to
recognize the impact and reach of digital video, which this study makes
clear,” said Anna Bager, Senior Vice President, Mobile and Video, IAB.
“Viewers are now tuning into, discussing, and sharing digital video on a
wide variety of screens. This means more eyeballs, more engagement, and
a wealth of new opportunities for marketers to reach their audiences
wherever they may be.”

The online survey was conducted by Vision Critical’s Media &
Entertainment Practice on behalf of the IAB from January 19th to January
21st, 2015, powered by Vision Critical Customer Intelligence Platform
among a sample of 651 adults 18+. The sample was designed to be
representative of the US census/online adult over 18 population. In
addition, 13 participants from the online quantitative survey were
invited to participate in a 2-day online discussion forum to share their
experiences with streaming video content to their TV in comparison to
watching regular TV.

About the IAB

The Interactive Advertising Bureau (IAB) empowers the media and
marketing industries to thrive in the digital economy. It is comprised
of more than 650 leading media and technology companies that are
responsible for selling, delivering, and optimizing digital advertising
or marketing programs. Together, they account for 86 percent of online
advertising in the United States. Working with its member companies, the
IAB evaluates and recommends standards and practices and fields critical
research on interactive advertising. The organization is committed to
professional development, elevating the knowledge, skills, and expertise
of individuals across the digital marketing industry. The IAB also
educates marketers, agencies, media companies and the wider business
community about the value of interactive advertising. Founded in 1996,
the IAB is headquartered in New York City.